BID SOLICITATION LISTS

  Most state or local governments maintain a list of potential suppliers. While there is no standard name throughout the country, they are commonly referred to as "Bidders' Lists". These lists are normally in categories by types of supplies and services. To have their name included in this list, suppliers normally fill out an "application".

  Knowing how this bid list application is handled and utilized can be the difference between no action, and the supplier obtaining a contract based upon the listing. Suppliers should not assume that once they are on the list they will be notified at the next purchase. Both the purchasing entity and the potential suppliers find that these lists are time consuming. And suppliers must recognize that constant follow up is absolutely necessary.

  When obtaining an application, the suppliers should meet with the buyer for an explanation of the types of list(s) maintained by this particular purchasing office and the idiosyncrasies of each list. Every buyer in a department must be able to explain in detail what kind of informal and formal listings are utilized by the staff or entity.

  Also, note that many times the rules change as the monetary value of the contract increases.

  The "official" list may only be used for formal advertised bids, so the applicant will need to know how often their supplies or services are advertised for competition. Other necessary information includes: When is the next bid; and is the current contract terminology and pricing information available to the applicant? Normally every business on the official list will receive the next formal bid invitation.

  Suppliers should not assume that all buyers in the office utilize the "official" list of items when the dollar value is under the formal bid limit. Most offices have an "informal" procedure for soliciting quotes, and buyers tend to have their own lists of suppliers at their desks. Many times their procedures only require competition from two or three vendors, and therefore the applicant must make sure that their name is also added to this informal listing.

  Sometimes the buyer adds every visitor to the "informal" list, but then rotates down through a long list of vendors for a particular product or service utilizing only the minimum number of businesses required by the informal procedure. Many times this list is on a rolodex or business card collection at the buyer's desk. Suppliers need to know where they are on such a list in order to anticipate when they might receive a quote request.

  Below the informal quotation level, there is probably a buyer discretion area for small dollar contracts. Each buyer forms an opinion as to which vendor will provide a fair, low price on a quick turn around item. Buyers seldom have to compete the price for low value items, and usually keep the names of companies in the rolodex at their desk. Since it is a personal opinion, different buyers may have completely different lists. The supplier should endeavor to find out how to get on each of these personalized lists. Sometimes this can be done by making sure the buyer remembers the vendor or its product.
  Some current methods are:

  • A shocking low price, lost leader item
  • A catchy slogan
  • A special characteristic (I use a cowboy hat)
  • A special color business card or brochure
  • A give away item, such as a writing pen with a phone number
  • Outstanding customer service
  • Constantly returning (squeaky wheel gets the grease)
  • A letter of recommendation from someone important
  Once on the list(s), businesses need to keep the purchasing department informed about address and phone changes and product additions or deletions. When a supplier does not respond to a request for quote or mail is returned, that name is normally removed from the list. A postcard or form letter indicating "NO BID" will usually keep the vendor on the list for the next solicitation. But suppliers should ask the purchasing staff if this communiqué needs to also include a phrase, "Please keep us on your list." Once removed from the list, the supplier will probably have to go back through the application procedure to be reinstated.

© 1997 by Donald L. Woods, All Rights Reserved